Asian shares poised to slip after Trump says he’s not satisfied with China trade talks

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Futures tipped a lower open for Asian stocks on Wednesday after U.S. stocks fizzled on the back of U.S. President Donald Trump’s remarks that he was “not satisfied” with the latest round of trade talks with China.

Nikkei futures traded in Chicago were lower by 0.2 percent compared to the index’s last close. Australian SPI futures, meanwhile, were down 0.07 percent at the end of the last session.

U.S. stocks finished lower on Tuesday despite starting the session on positive footing after China’s announcement that it would reduce tariffs on some vehicles to 15 percent from as much as 25 percent. Tariffs on certain automotive parts would also be cut.

Declines stateside came after President Donald Trump said he was “not satisfied” with bilateral trade talks with China that occurred last week, but called them a “start” to working out the U.S. trade imbalance with Beijing.

The Dow Jones industrial averaged declined 0.72 percent, or 178.88 points, to close at 24,834.41, the S&P 500 edged down by 0.31 percent to 2,724.44 and the Nasdaq composite slipped 0.21 percent to finish at 7,378.46.

European markets, however, got a boost from China’s tariff reduction announcement. The pan-European Stoxx 600 rose 0.27 percent and Germany’s DAX advanced 0.71 percent as autos notched gains.

On the geopolitical front, Trump said Tuesday there was a “substantial chance” that a summit with North Korean leader Kim Jong Un “may not work out.” Trump’s comments came as he met South Korean President Moon Jae-in ahead of a planned meeting, scheduled for June 12, with Kim.

In currencies, the dollar was softer after hitting a five-month high against a basket of currencies earlier in the week. That dollar index last stood at 93.609. Against the yen, the dollar traded at 110.81 at 7:00 a.m. HK/SIN.

Here’s the economic calendar for Wednesday (all times in HK/SIN):

  • 12:00 p.m.: Malaysia April inflation
  • 1:00 p.m.: Singapore April inflation

Minutes from the Federal Reserve are expected during U.S. hours.

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